(Scenario: Flood Area)Use Scenario: Flood Area

Multiple Choice

(Scenario: Flood Area) Use Scenario: Flood Area.A flood may occur,causing you to lose your entire home.In this case,your expected loss resulting from the flood would be: Scenario: Flood Area
Suppose that you own a home that is estimated to be worth $250,000.You live in a flood plain;as a result,the probability that you will lose your home to a flood is 30%.

A) $250,000.
B) $75,000.
C) $15,000.
D) $100,000.